Insider Guides to IRS Audits!

Ever wish that, as a business owner, you knew exactly what would raise "red flags" at the IRS? Or how to make an IRS audit go as smoothly and painlessly as possible?

If you're in the right type of business, you can get that information, directly from the IRS!

Traditionally, IRS examiners have been responsible for auditing many types of businesses. An examiner might audit a grocery store one week and a construction company the next. A lot of the examiner's time was spent learning about the business.

To improve efficiency, the IRS launched the Market Segment Specialization Program (MSSP). Examiners now focus on specific types of businesses. To help the examiners understand each type of business, the agency has developed training guides, called "Audit Techniques Guides." The guides explain the standard practices for the business, and tell the examiners exactly where to look for potential problems. (For example, auto repair shops sometimes don't report the parts they have in stock as inventory.)

The IRS has developed Audit Techniques Guides for dozens of business types, ranging from pizza shops to major league sports franchises. In addition, there are guides that deal with specific business practices, such as executive compensation, shareholder loans, or stock based compensation.

You can download the guides directly from the IRS website. There are other sites that distribute the ATGs as well, and some of them seem to have guides, perhaps a little out of date, that don't appear on the IRS website. Simply search the web for IRS Audit Techniques Guides to find a list!

Bob Nicholson / WYGK Consulting provides business, technology and strategic consulting for small businesses, internet start-ups and entrepreneurs.

Visit http://www.wygk.com

In The News:

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Single, married or cohabiting: Who pays the least tax?  The Irish TimesNot getting married could cost you more than €400000 in extra tax over 40 years.
Pakistan to introduce ‘sin’ tax on cigarettes, sugary beverages  The Indian ExpressPakistan will soon introduce a 'Gunnah Tax' or Sin Tax on tobacco products and sugary drinks which would supplement its annual health budget, PTI reported.
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Strongsville settles with Cleveland Clinic over new tax-exempt status; Strongsville schools may approve its own agreement Thursday  cleveland.comCleveland Clinic Foundation has reached an agreement with the city of Strongsville over the Clinic's tax-exempt status in Strongsville. ( Bob Sandrick, special to ...
How to avoid tax saving traps set by unscrupulous wealth managers, bank officials  Economic TimesAn average investor neither has the time or the inclination to go into the finer details of the policy.
Letter from Africa: How to get Ghanaians to pay their taxes  BBC NewsGhana's government should ban funerals for people who refuse to pay taxes, writes journalist Elizabeth Ohene.
Tax queries: Gifts received from relatives are not taxable  Economic TimesGift from specified relative is exempt from tax as per Section 56(2) of the Income Tax Act. The gift will have to be supported by a gift deed.
Herbert proposes $200 million tax cut — but also new taxes to 'broaden' Utah's shrinking tax base  Deseret NewsIn a year with more than $1 billion in new state revenue, Gov. Gary Herbert is proposing a $200 million sales tax cut to help Utahns keep more money in their ...
Niger shuts Airtel telecom offices over unpaid taxes  The Financial ExpressNiger on Saturday ordered the closure of the offices of the country's biggest telecoms operator Airtel, a subsidiary of India's Bharti Airtel group, for unpaid taxes of ...
1 Smart Tax Move to Make in December 2018  Motley FoolMost of the provisions of the tax reform bill that passed in late 2017 took effect at the beginning of this year. Between new tax rates and brackets, expansions of ...
Converting company to LLP is a transfer, hence taxable, rules I-T Appellate Tribunal  Economic TimesMUMBAI: A new tax ruling threatens to challenge a strategy that allowed thousands of businesses and professionals to reorganise themselves and attract ...
Tax saving feature and decent returns make NSC an attractive investment option  Moneycontrol.comIndividuals with low-risk appetite can consider lock-in rates at current level.
Tax Optimiser: How Wahi can cut tax by Rs 94,000 via education loan, NPS  Economic TimesWahi can reduce her tax by over Rs 94000 if her organisation offers her the NPS benefit and few allowances are replaced with tax-free perks.
Senators propose bigger tax breaks for Core Tech Captive Insurance  Pacific Daily NewsSenators on Wednesday decided to give even larger tax breaks to Core Tech Captive Insurance, then moved a bill to approve the tax breaks forward for a ...
Thousands in France protesting gas taxes and President Macron  Vox.comThousands of protesters in Paris and elsewhere in France demonstrate against rising fuel prices and Macron's economic policies.
FBI Raids Trump's Former Chicago Tax Attorney Who Saved the President $14 Million in Property Taxes  FortuneThe FBI raided the offices of Trump's former Chicago tax attorney, who obtained millions in assessment relief for the Trump Organization.
Why greens are turning away from a carbon tax  POLITICOPutting an economic price on greenhouse gases is proving a hard sell with the public, even as time to head off climate change shrinks.
50% of direct tax collections netted, high growth clocked post demonetisation, says CBDT report  Times NowThe report added that net direct tax collections grew by 18% in 2017-18, at Rs 10.03 lakh crore, from 2016-17. "The growth rates in 2015-16 and 2014-15 were ...
Trump’s Tax Promise of Trillions Back to U.S. Fails to Materialize  BloombergThe amount of offshore cash U.S. corporations have returned home so far this year is just a fraction of what President Donald Trump had promised.
It May Be Time to Stop Itemizing Your Tax Deductions  Yahoo FinanceAround this time of year, many taxpayers begin the annual ritual of pondering The Big Question: Do I take the standard deduction or spend time hunting for ...

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